Business
Gross Earnings: Union Bank Records 30% Increase
Union Bank of Nigeria Plc has announced gross earnings of N147.32 billion for the group for the financial year ended March 31, 2009, representing an increase of 30 per cent over last year’s figure of N112.99 billion.
In the same vein, gross earnings for the bank increased by 40 per cent from N92.94 billion in the preceding year to N130.19 billion during the period under review. The group’s total assets grew from N1.215 trillion achieved in the preceding year to N1.329 trillion in 2009, while the bank recorded N1.197 trillion from the figure of N993.93 billion recorded in 2008, indicating a growth rate of 21 per cent. Also, group’s deposits rose from N682.31 billion in 2008 to N772.13 billion, while the bank’s deposits increased from N649.33 billion to N758.39 billion in 2009 representing an increase of 17 per cent.
However, the full provision made for bad loans and other non-performing credits in a full swoop impacted negatively on the group’s profitability. The group’s profit before provisions stood at N39.74 billion at the end of 2009 financial year.
The increase in the provision for risk assets to N83.283 billion brought loss before taxation and exceptional items to N43.539 billion, compared to a profit of N33.012 billion in 2008.
The bank’s management, led by Mrs Funke Osibodu as Group Managing Director and Chief Executive, remains very optimistic that Union Bank would again assume its rightful position in the banking industry now that its books have been cleaned up and is poised to exploit the business opportunities arising from the gradual recovery in the global economy.
Mrs Osibodu also stressed the need for the esteemed customers to remain steadfast with the bank and increase their patronage, as the bank was being repositioned to them, thereby guaranteeing better value for shareholders in the years ahead.
The management of Union Bank has restructured its operation with a view to enabling it render world class services to customers globally.
Mrs Funke Osibodu, on assumption of office, had embarked on surprise visits to various branches of the bank across the country with a view of assessing the quality and map out strategy to improve the situation.
Although, two months after the visitations, many customers have attested to good transformations in customer services at Union Bank branches in terms of timely services, personal attention by staff, improved banking environment, facilities and information technology infrastructure.
Mrs Osibodu said the business process and infrastructure upgrade team of the bank has transformed many of the bank’s branches into modern banking offices with ambience such as the Davies Street branch, Tinubu branch, Victoria Island branch, Foreshore Towers branch and Adeola Odeku branch among numerous owners.
Speaking at the Savings Bonanza Draw of the bank at Owerri, Imo State recently, the managing director encouraged the bank’s customers to spread the good news about the positive changes in the financial institution.
She informed the customers that the new changes in the leadership of Union Bank was intended to make the bank, more “Time tested, bigger, stronger, more more reliable”.
Osibodu pointed out that the changes were introduced to safeguard the interest of the shareholders and more importantly, those of the depositors.
She added that Union Bank is being repositioned to provide excellent services to its highly esteemed customers, thereby guaranteeing better value for stakeholders.
Union Bank was one of the five banks, whose top executives were fired on August 14 by the Central Bank of Nigeria (CBN) for presiding over decisions that impaired the finances of the banks. Osibodu took over from the former Group Managing Director, Barth Ebong. The sum of N120 billion was injected into Union Bank from the N420 billion set aside for the five banks by the CBN.
Industry observes applaud the positive changes in the customer services of Union Bank, while acknowledging the fact that given the pedigree of the financial institution it could easily get over its challenges.
Union Bank has recovered substantial portion of its non-performing loans which has buoyed its liquidity. Aside its N1.128 trillion asset base, the bank has a deposit base of over N682 billion from a customer base of 4.82 million, the largest in the industry.
The bank boasts of the world class IT infrastructure, flexcube, which ensures a robust platform for electronic business as well as a rejuvenated workforce with the largest concentration of experienced and qualified bankers which as at August 2009 stood at 6, 042.
Union Bank has restructured its processes tools, human capital and owner resources with a view to emerging the best in the industry. The acronym project GEAR, simply means G-gross the bank from good to great, E-eclipse the competition, A – aligning the bank’s strategy, people, processes and technology, R-redefine the bank’s position in the industry as leaders in the banking industry. The new managing director and chief executive officer had promised to focus on people management, business development and relationship management, risk management and control, all necessary to leap frog a bank’s core business, above any crisis situation.
Business
Food Vendors, Others Relocate To New Site At PH Airport
The raging controversy between the Port Harcourt International Airport Management and restaurants/canteen operators and theirallies over relocation has been brought under control, as the operators have commenced relocation to their structures at the new site.
Recall that there had been serious feud over a directive by the Manager of the airport, Mr. Michael Area, for food vendors and their allies to relocate to the new site.
They insisted that the new site was too distant and hence, would negatively affect patronage from customers, with possible loss.
They further also insisted that it wouldcost them much money to put up another structure, given the economic situation in the country, since the airport management did not build any structure for them, apart from providing the empty land they have to also pay for.
The situation had led to flexing of muscles, which made the Airport Manager to order for sealing of all shops, resulting in scarcity of food, as airport users could not find a place to eat, apart from the only Genesis fast food spot available.
As at last Friday, The Tide observed that most of the food vendors had transferred their structures to the new place, and had started doing business there already.
Meanwhile, customers have started settling down at the new location as they were seen patronising shops for foods and drinks, in spite of the distance.
Few of the remaining structures at the old site, The Tide further gathered, will also be removed as quickly as possible, and the owners are making efforts to get funds for the job to be done.
One of them, Mrs Aka Love explained that she was going to relocate to the new place before the end of March.
Currently, business activities at the old site have come to null, as the place which was usually a beehive of food, drinks and relaxation, has completely winded down.
By: Corlins Walter
Business
MOWCA Strengthens Maritime Crime Prevention
Secretary General of the Maritime Organisation of West and Central Africa (MOWCA), Dr. Paul Adalikwu, has stepped up interaction with the United States Government to lift restrictions placed on some member countries allegedly implicated in illicit shipping activities.
Adalikwu, who led a delegation from the MOWCA Secretariat to the US Embassy in Abidjan for a first leg of the strategic consultation aimed at promoting seamless participation of MOWCA countries in international trade within the global maritime space, reiterated the organisation’s commitment to the best ethical and lawful maritime practices.
Addressing the U.S Ambassador to Côte d’Ivoire, H.E Mrs Jessica Davis Ba, the MOWCA SG stated the organisation’s interest in promoting the International Ship and Port facility Security (ISPS) code which aims at enhancing security of vessels and their ports of call.
He expressed the commitment of MOWCA in promoting environmentally friendly, safe and cost effective shipping without any encumbrance that may limit the economic potential of member countries.
Dr Adalikwu recalled that at the instance of the U.S. Department of State invitation, MOWCA participated in the 2023 Registry Information Sharing Compact (RISC) Conference in Larnaca, Cyprus, on February 28–March 1, 2023, and a virtual meeting held on June 6 2023, with Mrs Jennifer Chalmers, Officer in change of Counterproliferation Initiative.
He recalled The U.S. DOS willingness to support MOWCA’s effort for preventive maritime security through the establishment of the Center for Information and Communication (CINFOCOM) with the aim to ensure a maritime situational awareness domain within MOWCA’s member states’ waters.
He added that MOWCA under his watch is committed to training and retraining of maritime practitioners and experts to enhance the human capital capabilities of member states.
The CINFOCOM will help prevent transnational crimes committed at sea like sanctions evasion by North Korea and other state actors, who exploit poor enforcement due diligence by ship open registries to circumvent United Nations and U.S. trade restrictions.
By: Nkpemenyie Mcdominic, Lagos
Business
Nigeria’s Public Debt Hits N97.3trn – DMO
The Debt Management Office (DMO) has hinted that Nigeria’s public debt increased by 10.7 per cent from N87.87 trillion in the third quarter of last year, to N97.34 trillion as at December 31, 2023.
DMO, in an update data released last Friday, said the increase in the debt stock was largely due to new domestic borrowing by the Federal Government to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.
The office noted that the N97.3 trillion public debt comprises of domestic debt of N59.12 trillion and external debt of N38.22 trillion. The sum of $3.5 billion was used to service external debt during the review period.
“Nigeria’s Public Debt Stock as at December 31, 2023 was N97.34trillion or $108.229 billion. This amount comprises the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the 36 States Governments, and the Federal Capital Territory (FCT).
“There was an increase of N9.43 trillion over the comparative figure for September, 2023, which was largely due to new domestic borrowing by the FGN to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.
“At N59.12 trillion, total domestic debt accounted for 61 percent of the total public debt stock, while external debt at N38.22 trillion accounted for the balance of 39 percent.
“Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77 percent) and bilateral lenders (14.02 percent) or total of 63.79 percent which are mostly concessional and semi-concessional.
“Whilst the DMO continues to employ best practice in public debt management, the recent and on-going efforts of the fiscal authorities to shore up revenue will support debt sustainability”, DMO stated.
By: Corlins Walter
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